Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

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The Swedish tobacco market continued to grow in 2017 despite ever stricter regulations being put in place. Positive value growth is expected to be maintained over the forecast period, in part thanks to the country’s rising population and increasing migration to Sweden from the Middle East, where smoking has a strong tradition.

Company strategies influenced by changing regulations

The strategies and activities of tobacco companies are being influenced by both recent and expected changes in legislation. As the cigarette industry is now very heavily regulated, manufacturers are turning their attention to presenting their products in an unusual way or expanding into other categories.

Competitive environment differs greatly by category

In terms of retail value sales, the biggest category remained cigarettes, followed by Swedish-style snus. Cigarette sales continued to be dominated by the subsidiaries of global manufacturers, namely JTI Sweden, Philip Morris and British American Tobacco Sweden.

Distribution also varies significantly by category

In 2017, distribution also continued to vary greatly by category, with there being one clear exception, namely internet retailing, which is rapidly gaining ground in all tobacco categories. Swedes are very keen on buying things online as it is easy to compare products and prices, while the channel also offers access to a wider range of goods for those in sparsely populated rural areas.

Tobacco in Sweden set to record further positive growth over the forecast period

Retail value sales of tobacco products are expected to grow further over the forecast period, driven by anticipated tax hikes, new fees and a general premiumisation trend, with consumers increasingly valuing quality over quantity. Sales will also be fuelled by population growth, with Sweden having a relatively high birth rate by European standards and witnessing the arrival of more immigrants from the Middle East.

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